Horizon Blue Cross Blue Shield of New Jersey, the state’s largest and oldest health insurance company, will lay off 242 employees, or 5% of its workforce, starting April 26.
A company spokesperson said that Horizon is dealing with “unprecedented financial challenges due largely to higher medical costs and utilization across all lines of business.”
The layoff announcement follows $275 million in cost reductions over the past three years.
The reduction was disclosed in a Worker Adjustment and Retraining Notification filed with the New Jersey Department of Labor and Workforce Development. Horizon employs 5,500 people.
Horizon spokesman Thomas Wilson said that despite reducing operating costs by $275 million, “our current cost structure is simply not sustainable in this environment and we have a responsibility to our customers and members to ensure the long-term financial strength of the company.”
The workforce reduction affects employees at Horizon headquarters in Newark and its Hopewell location.
Horizon insures 3.8 million people in New Jersey, representing about 40% of New Jersey residents. It is a subsidiary of Horizon Mutual Holdings, Inc., a not-for-profit mutual holding company.
